The American Bankers Association isn’t opposed to market structure legislation for digital assets but is seeking “tiny, surgical” changes to ensure the Genius Act’s prohibition on interest and yield on payment stablecoin is upheld, ABA President and CEO Rob Nichols told the news site 535 today.
The Clarity Act would create a regulatory framework for cryptocurrencies and other digital assets, much like the Genius Act did for stablecoins. ABA has urged lawmakers to use the Clarity Act to close a loophole that allows digital asset service providers to bypass the latter bill’s payment of interest ban.
In an interview, Nichols said he has been meeting with senators from both parties in recent days to discuss the issue and is encouraged by what he is hearing. ABA believes small changes are needed so that all parties can come out ahead, he said.
“We think we can be the banking capital of the world and the crypto capital of the world,” Nichols said. “This doesn’t have to be lose-lose, in our opinion. It can be a win-win with these tiny, surgical, precise changes, and that’s what we’re seeking.”
Nichols also expressed support for the Main Street Capital Access Act, which seeks to boost community banking by tailoring bank regulation and encouraging de novo bank formation. While the legislation is sponsored by House Republicans, he noted it has support from several Democrats.
